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Terra Classic (LUNC) and Its Revolutionary 0.5% Burning Tax: A New Era of Cryptocurrency Stability

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In the tumultuous world of cryptocurrencies, a new development is drawing the attention of investors and enthusiasts alike. Terra Classic (LUNC), a coin that has risen from the ashes of the Terra Luna collapse, is implementing a burning tax of 0.5%, stirring the crypto community. The implementation of this tax burn is perceived as a pioneering move to bring stability to the cryptocurrency while stimulating its value.

The Story Behind Terra Classic

Terra Classic (LUNC) was born out of the downfall of Terra Luna in early 2022. This collapse, which marked one of the most challenging periods for cryptocurrency traders, known as “crypto winter”, generated shockwaves throughout the industry. Post-collapse, Do Kwon came up with a plan to restore the ecosystem, giving birth to Terra 2.0. The original blockchain, now known as Terra Classic (LUNC), was left without its algorithmic stablecoin, thus marking a new era for this digital asset.

The 0.5% Burning Tax

The decision to implement a 0.5% burning tax came about as a way to address the surplus of LUNC supplies that has worried the community since the market crash in May. The world’s largest crypto exchange, Binance, has announced its support for the Terra Classic network upgrade to increase the LUNC burn tax from 0.2% to 0.5% as per Proposal 11515 passed by the community. Binance CEO Changpeng “CZ” Zhao is in agreement with this move, which comes in response to the dwindling LUNC price.

The mechanism of this tax burn involves a 0.5% fee on all on-chain Terra Classic transactions, including wallet and smart contract interactions. The revenue from this tax will be used to burn LUNC tokens, effectively reducing the total supply over time. However, it’s important to note that trades on some exchanges may not be subject to this tax.

Implications and Reception

The introduction of the burning tax is expected to have significant implications for Terra Classic and the broader crypto market. By reducing the supply of LUNC, the tax aims to increase the token’s value. This idea has been met with considerable enthusiasm within the crypto community, driving a surge in LUNC’s price by as much as 200%.

While the burning tax has received favourable feedback, leading to the strong performance of LUNC, it has also triggered a short-term bearish outlook due to the token entering overbought territory. However, the increase in LUNC’s social volume suggests that more traders are paying attention to current events, potentially leading to more Terra Classic accumulation and a smaller drop in price due to the introduction of a powerful incentive for long-term HODLing.

Despite the challenges associated with making on-chain transactions more expensive, the crypto community seems to be leaning more towards accepting this deflationary price. As more investors grow open to the network, LUNC may enter a strong accumulation phase, making it an intriguing prospect for those interested in the future of cryptocurrency.

The introduction of a 0.5% burning tax by Terra Classic (LUNC) represents a novel approach to maintaining stability and increasing the value of a cryptocurrency. The success of this initiative could potentially influence future strategies in the ever-evolving landscape of digital currencies.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CoinReporter.io and EUReporter.co does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Luna Classic

Terra Luna Classic’s Proposal to Burn 800 Million Tokens

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In the ever-evolving world of cryptocurrencies, a new development has emerged from the Terra Luna Classic community. A proposal has been put forward to burn or return 800 million USTC tokens allocated to the Ozone Protocol by former CEO Do Kwon. This move has sparked a lively debate within the community, with members divided on the best course of action.

Vegas, a prominent member of the Terra Luna Classic community and an ex-Terra Rebels developer group member submitted the proposal. Vegas has suggested that the 800 million USTC tokens currently held in a wallet linked to the Ozone Protocol should be returned to the Terra Luna Classic community pool. The reason for this proposal is that the Ozone Protocol project is not actively following the proposed development plan.

Vegas stated, “To facilitate this, we ask the community fund to support us and underwrite Ozone indefinitely unless a counter-proposal is passed to remove the said underwriting funds.”

The Ozone Protocol was initially proposed by Terra co-founder Do Kwon and was bootstrapped using funds from the community pool. The Ozone V1 and Ozone V2 saw high demand for their underwriting capacity. However, the Risk Harbor team has not fully utilized 1 billion UST (now USTC). Thus, Vegas argues, the funds should return to the community pool.

However, not everyone in the community agrees with Vegas’s proposal. Alex Forshaw, a former Terra Rebels member and co-author of the Terra Classic Revival Roadmap, believes it would be better to burn the idle USTC tokens rather than return them to the community pool. 

Forshaw argues that if the tokens are returned to the community pool, validators and stakers might take them and dump them, which would undermine the work of the USTC team. However, burning these USTC tokens would strengthen the narrative of repegging, or else the community could choose to burn part of the tokens and send some to the community pool.

The Terra Luna Classic community is committed to maintaining the $1 narrative. The USTC repeg and LUNC developments are slowly picking up pace as developers revealed plans to bring significant changes to the chain. 

LUNC’s price fell 2% in the past 24 hours, with the price currently trading at $0.000081. The lowest and highest values recorded for the past day stand at $0.0000807 and $0.0000834 respectively. Concurrently, USTC’s trading value is positioned at $0.01613, reflecting a growth of more than 1% in the previous day and an impressive leap of 30% in the preceding month. The trading volume has experienced a half increase during the same one-day span.

The suggestion to incinerate or give back 800 million USTC tokens has ignited a spirited discussion within the Terra Luna Classic community. The resolution of this discussion could profoundly affect the future trajectory of both USTC and LUNC. As the community persists in deliberating the optimal strategy, it will be intriguing to observe the evolution of this circumstance and the subsequent influence it will exert on the Terra Luna Classic ecosystem.

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